Rhinebeck Bancorp, Inc. Goodwill & Intangibles Disclosure
4. Goodwill and Intangible Assets
The changes in the carrying value of goodwill are as follows:
Year Ended | |||||||
December 31, | |||||||
| | 2025 | | 2024 | |||
Beginning balance | $ | 2,235 | $ | 2,235 | |||
Activity during the period |
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Ending balance | $ | 2,235 | $ | 2,235 | |||
The Company performs its annual goodwill impairment test during the fourth quarter. The results of the Company’s impairment test indicated that the reporting unit’s fair value was greater than its carrying value and therefore no impairment of goodwill existed at either December 31, 2025 or 2024.
The carrying value of the customer list and core deposit intangibles are:
Years Ended | ||||||
December 31, | ||||||
| 2025 | | 2024 | |||
Beginning balance | $ | 166 | $ | 246 | ||
Amortization |
| (60) |
| (80) | ||
| |
| | |||
Ending balance | $ | 106 | $ | 166 | ||
Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized over their estimated useful lives. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. The values assigned to customer lists and core deposit intangibles is based upon the application of the income approach. At December 31, 2025, based upon a review of the intangibles, the Company determined that the fair value of the amortizable intangible assets exceeded their carrying values.
As of December 31, 2025, the future amortization expense for amortizable intangible assets for the respective years is as follows:
2026 | | $ | 29 |
2027 |
| 21 | |
2028 |
| 16 | |
2029 |
| 13 | |
2030 |
| 11 | |
Thereafter | 16 | ||
Total | $ | 106 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2023 | Mar 26, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 22, 2022 | |
| 2018 | Mar 29, 2019 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.